The judicial foreclosure is used in those states where no “power of sale” is included in the mortgage document.  It provides that upon the required public notice the property can be sold by court order. 

In some states non-judicial foreclosure is accepted when a power of sale is contained in a mortgage or trust deed.  In this case, a lender has the right to sell the mortgaged property upon default and is not required to spend the time and money involved in a court foreclosure suit.  At the same time, a borrower’s redemption time is considerably shortened  by the elimination of the statutory redemption period sometimes granted in a judicial process.  The notice of default is recorded by the trustee at the county recorder’s office within the designated jurisdiction's time to give notice to the public of the upcoming auction. 

Some states also allow a strict foreclosure procedure under which a lender can acquire the mortgaged property.  After the necessary notice has been given to the borrower and the necessary papers served, the court establishes a specific time during which the balance of the defaulted debt has to be paid in full.  If the debt is not paid, the borrower’s equitable and statutory redemption rights are waived and the court awards full legal title to the lender. 

FHA rules require that a homeowner be at least three months behind in mortgage payments, the delinquency span a six-month period and that he or she is in breach of the mortgage before a lender can foreclose an FHA loan.